One of the greatest things about this country is the availability of choice. Want a breakfast cereal? You can choose from a multitude at your local grocery store. A loaf of bread? White or wheat no longer cut it--now, the more grains you have the better. 5? 10? 15? The grain sky is the limit. The ability for consumers to choose can be a good thing as long as there is actual choice. However, when we look at certain consumer areas--cell phone providers, for example--the actual ability to choose a specific provider is a limited one. The culprit? The early termination fee.

The Federal Trade Commission (“FTC”) is hosting a Forum on May 11, 2011 to examine how government, business, and consumer protection organizations can work together to prevent consumers from receiving unauthorized third-party charges on their phone bills. This practice is known as cramming.

Verizon Wireless and the FCC have entered into a consent decree, the lawsuit equivalent of a settlement agreement over its improper billing of data use charges going all the way back to November 2007. Verizon Wireless anticipates refunding more than $52.8 million to consumers and will make a volunteer contribution of $25 million dollars to the FCC.

Is the PUC really doing its job?   A large number of informed observers both within and outside the Commission think not.  To see how a regulatory agency has lost its way,  read the September 26th San Jose Mercury News front page story below.